How effective are outplacement services?

There are many levels of quality and performance to be found in outplacement services. Quite clearly, some services 'work' in terms of delivering quality outcomes and some don't 'work' at all.

For senior people and professionals, quality can be measured with a range of questions, the most important question being one which should be asked at about the three month point: "Has the service supported you in achieving effective engagement in markets of interest?" In many instances, senior participants are not asked at all how the service has helped them, and when asked this question usually provide a pretty negative answer.

Quality - in a service which 'works' - also encompasses the degree to which an individual has been supported in developing a broad canvas of career options, including career reinvention if necessary and a variety of choices in self-employment. A service that works helps people reach clarity around signature strengths and then enables them to articulate these. It helps people really explore the different markets in front of them, with research skills and data bases. And it helps people build new competencies in networking, for interviewing, and in negotiating.

Wrapped around these practical deliverables, a quality services is likely to come from a senior consultant with real commercial and business experience matched with the individual client. This relationship is developed in programs which are not time limited and which are tailored for each person, rather than being delivered in workshops or a group setting.

Much of this is understood by HR leaders, who of course are assailed with pitches from services suppliers on a daily basis. However, in order to nail what really matters to candidates, research into the preferences and needs of individuals is critical. In order to do exactly this we recently launched a multi-phase research project, capturing data from a range of senior people. The research was built with the support of a fully independent research organisation and with the support of Six Figures, the recruitment and networking website aimed at senior individuals - where the survey invitation was hosted.

In the first phase of this research - undertaken through September 2009 - some 100 or so respondents answered a range of questions around:

• What is important to them in the outplacement process
• Whether they would endorse their firm as a place to work
• Whether they would recommend their outplacement supplier

It did not surprise us to learn that slightly more than half the respondents were not able to give their outplacement supplier a favourable rating: this is a profession where for too long fairly 'light' services are supplied by many service suppliers, and large numbers of recipients simply walk away without a result of value.

Nor did it surprise us to learn that the most important elements in outplacement services identified by this sample were:

• The ability of a consultant to actively engage with the individual 
• The ability of a consultant to build an understanding of the capabilities and strengths of the individual
• A consultant's commercial experience  
• Access to face to face coaching
• The ability of the service provider to widen the participant's understanding of future career alternatives 

These were the top five as ranked in a list of about 20 elements, including items such as the provision of hard copy materials, office facilities, financial advice etc. 

There is a second phase research program now underway, examining more probing questions about the practices of employers and outplacement firms. Over 300 respondents, again people who have accessed the Six Figures website, have undertaken this phase of the research (from October-December 2009) with the findings due out at the end of February.

At this stage, the first body of research suggests that if HR directors are concerned about sourcing a service which will actually deliver value to senior participants (and in turn enhance their organisation's reputation and employment brand) there are five steps they should apply in the selection process.

1. If referred individuals are to be understood and supported effectively, then the consultants involved should match them in terms of business experience. Don't see them paired off with junior, inexperienced consultants. Ask to meet the consultants - don't deal just with the supplier's sales manager.
2. A good part of the value added, and the speed with which effective outcomes are reached, depends on the supplier's materials. Look through them. Look at their depth, including areas such as starting or buying a business, or becoming a consultant, building portfolio careers, seeking directorships. Ask how broad the materials are in these areas, and look through them yourself.
3. Ask about the support provided in relation to research: it should be comprehensive and creative.
4. Ask about the connections the supplier has with executive recruiters, search firms and contract executive agencies. Ask the consultants about their knowledge of industries and companies - and form a view about their own business acumen. How close are they to the market?
5. As your ex-staff move through programs, keep in touch with them and ask them about their experience with the consultant; probe their view of the consultant and the materials they are working with. Ask them if they are learning, being stretched, and helped significantly in developing new and better careers.

About the author

Hugh Davies is managing director of Macfarlan Lane, a provider of career transition and career development services for CEOs, partners, senior executives and professionals.

A copy of the research report can be found on the Macfarlan Lane website: www.macfarlanlane.com.au - under 'News and info' and then 'Research and Links'